January 2015 Federal Cloud Computing Summit Summary

Karen Caraway, Nicole Gong, Michael Kristan, Nancy Ross, Justin F. Brunelle

The MITRE Corporation

Tom Suder

The Advanced Technology Academic Research Center

Abstract The latest installment of the Federal Cloud Computing Summit took place on January 14th-15th 2015. The

Summit began on January 14th with the MITRE-Advanced Technology Academic Research Center (ATARC)

Collaboration Sessions that allowed industry, academic, government, and MITRE representatives the

opportunity to collaborate and discuss the government’s challenge areas in cloud computing. The goal of

the collaboration sessions is to create a forum for an exchange of ideas and a way to create

recommendations to further the adoption and advancement of cloud computing within the Government.

The MITRE Corporation is a not-for-profit company that operates multiple federally funded research and

development centers (FFRDCs). ATARC is a non-profit organization that leverages academia to bridge

between government and corporate participation. MITRE worked in partnership with the ATARC to host

these collaborative sessions as part of the Federal Cloud Computing Summit.

The collaboration sessions occur on the first day of the two day Federal Cloud Computing Summit. On

January 15th, Maria Roat (Chief Technology Officer of US Department of Transportation) gave the opening

keynote. The Summit continued with a series of panel discussions, an industry trade show, and concluded

with a panel discussion on the collaboration session outcomes. The goal of the collaboration sessions is

to create a forum for an exchange of ideas and a way to create recommendations to further the adoption

and advancement of cloud computing within the government.

The goal of the MITRE-ATARC Collaboration Sessions is to enable the collaboration between government

representatives that potentially would not otherwise meet, academics, and industry representatives. The

sessions identify challenges, best practices, recommendations, success stories, and requirements to

further the state of cloud computing in the government.

The government, industry, and academia met to address challenge areas in cloud computing, as well as

identify courses of action to be taken to enable government and industry collaboration with academic

institutions. Academic participants used the discussions as a way to help guide research efforts, curricula

development, and to help produce hire-ready graduates to advance the state of cloud computing in the

government.

Several recommendations were made as a result of the exchange of ideas in the collaboration sessions.

This white paper summarizes the discussions in the collaboration sessions, as well as identifies

recommendations for government and academia while identifying orthogonal points between challenge

areas. It also recommends an increase in cross-government and academic collaboration to share best

practices and address cross-cutting challenges.

This paper elaborates on the following high-level outcomes:

Many perennial challenges in cloud computing persist (e.g., acquisition, security, vendor lock in),

but are being mitigated

The “true cost of adoption” and return on investment calculations should include standard units

of cost, quantifiable metrics, and should measure the cost of delayed adoption

Agile processes (e.g., fail-early models, rapid deliveries) can help mitigate risk during cloud

adoption

Collaboration Session Outcomes At the collaboration symposium, participants broke into four separate collaboration sessions with each

session discussing a different challenge area. Each MITRE-ATARC Collaboration Session was a focused and

moderated discussion among government, industry, academic, and MITRE representatives about a cloud

computing challenge area.

Four separate sessions were held, individually focusing on:

Public, Private, Government, or Hybrid clouds?

The Umbrella of Acquisition

Tiered Architectures

The Role of Cloud Computing in Emerging Technologies

Participants discussed current problems, gaps in work programs, potential solutions, and ways forward

for each of the challenge areas. This section outlines the goals, outcomes, and a summary of each of the

collaboration sessions.

Public, Private, Government, or Hybrid clouds?

The Public, Private, Government, or Hybrid Clouds session discussed the unique challenges, benefits, and

policies associated with different categories of cloud deployments available for government adoption.

The goal of the joint session was to outline recommendations for how to select the appropriate cloud for

implementation and adoption, as well as identify the best practices for adoption.

The goals of this session included discussions of the following:

Identify which categories of cloud the government should adopt under what conditions

Identify the unique challenges and benefits of each cloud category

Discuss best practices for adopting a hybrid cloud approach

Recommend policy changes to increase the ease of hybrid cloud creation and adoption

The discussions identified the following needs:

Reform of acquisition policy to facilitate the cloud computing utility model necessary for

predictive pricing

Establish government/organization cloud broker to streamline and standardize cloud

requirements and procurements

Leverage lessons learned from other government cloud adopters to avoid delays during cloud

adoption and use

Using agile processes, start small and utilize least restrictive deployment models that meet the

needs of the organization

Launch a fundamental shift in organization culture and business processes required for

successful cloud computing adoption

Increase cloud computing education with emphasis on colloquial rather than scientific terms

The summary of the collaboration session is below:

The Public, Private, Government, or Hybrid Clouds session identified several challenges targeted for

mitigation. Significant time was spent discussing the cloud deployment definitions. It became apparent

that the collective perceived definitions of public, private, government, and hybrid clouds did not align

with the NIST definitions1. The NIST cloud definitions are too scientific for the non-technical consumer to

understand and therefore further clarification and education among the potential cloud community is

required. Therefore, the attendees agreed to high-level definitions based on use of the deployment

models based on availability:

Public – All users

Private – Limited set of users

Community – Restricted set of users

Hybrid – Combination of Public, Private, Community, and/or hosted and non-cloud

Several barriers to cloud adoption were discussed:

Policy: Data protection and compliance, interoperability and data portability, identity and access

management, auditing, adaptability, and availability are areas of concern.

Funding: Agencies have neither the appropriate funding to migrate existing applications nor the

appropriate methods to establish budgets for a fluctuating costs.

Long term viability of Cloud Service Providers: Agencies are concerned about losing access to

their data should the cloud service provide (CSP) go out of business.

1 NIST, The NIST Definition of Cloud Computing, Special Publication 800-145. http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf

Operational Changes: Agencies require fewer internal IT personnel in the areas of infrastructure

management, technology deployment, and maintenance. Therefore, operational changes will be

required in areas such as disaster recovery, continuity of operations, monitoring, and oversight.

Lacking cloud knowledge and expertise: Agencies typically have neither the necessary tools nor

staff to implement cloud services.

Ensuring data portability and interoperability: To preserve their ability to change vendors in the

future, agencies may attempt to avoid platforms or technologies that “lock” customers into a

particular cloud.

Overcoming cultural barriers: Agency culture may act as an obstacle to implementing cloud

services.

Procuring services on a consumption (on-demand) basis: Because of the on-demand and elastic

nature of cloud services, it can be difficult to define specific quantities and costs of consumption.

These uncertainties make contracting and budgeting difficult due to the fluctuating costs

associated with elastic and incremental cloud service procurements.

Finally, the discussion concentrated on where and how agencies are currently utilizing cloud services. The

figure below depicts that as transitions from public, government community, and private deployment

models in which the cost increases as well as security of data. Similarly, as one transitions from IaaS, PaaS,

SaaS service models there are more controls and standard security in place.

Recommendations:

Identify opportunities for procurement of cloud services on a consumption basis

Establish cloud brokers or champions within agencies adopting cloud technologies

Collaborate with other agencies

Use least restrictive deployment models to facilitate adoption

Be part of the cultural change

Create cloud computing education opportunities for IT and non-IT personnel

The Umbrella of Acquisition

The Umbrella of Acquisition session was intended to explore the challenges of adopting cloud computing

in the government due to contractual, cultural, and budgetary constraints. The goal of the session was to

outline recommendations for constructing contracts to ease adoption of cloud computing, establish best

practices for cloud adoption, and coming up with a common method of calculating the return on

investment of cloud computing adoption.

The goals of this session included:

Identify contracting vehicles that ease the challenges of cloud adoption

Discussing best practices for cloud contracting and adoption

Discuss common methods of defining the return on investment for cloud adoption

This session identified the following needs:

The government needs to establish a revolving fund which can cover incurred pay-per-use

charges, especially across fiscal year boundaries

The government, industry, and academia need to establish open standards for interoperability

between CSPs

The government needs to consider making changes to the Federal Acquisition Regulation (FAR)

to include provisions for commodity cloud services as utilities

o The NIST definition of pay-per-use needs revisiting

An organization should craft standard contracting language that can be used by multiple

government organizations as a template

o Language should include best practices that other agencies have identified and proven

through lesson learned (e.g., handling data destruction, retention, or handling

regulations)

Government agencies that are moving to the cloud need to get business processes in order first

so that they take advantage of cloud’s benefits

The summary of the collaboration session is below:

The Umbrella of Acquisition session discussions started with four topical questions posed by the

session leads. First, from the perspective of a CSP, how effective has the government been in developing

clear, specific scopes of work that enable the effective development of solutions for the government's

requirements? Second, the cloud PMO most often deals with agency CIO staff in developing requirements

and selecting acquisition vehicles but it is the CO staff that executes the procurement. The CO staff is less

familiar with cloud technology; how do we reconcile disconnects between both groups of customers?

Third, GSA is striving to be as consistent as possible when providing cloud vehicles. Can GSA modify or

change how it buys and sells cloud services to be more consistent with private industry within the

limitations of the FAR? Fourth and last, despite the government’s “Cloud First” policy, cloud migrations

are not occurring as fast as many people would prefer. What are today’s known federal acquisition process

limitations and challenges that inhibit cloud adoption across the government? What steps have been

taken to address these challenges in recent years?

The discussions in the session identified several key outcomes. A recurring topic at the summit was vendor

lock in and cloud exit strategies. Vendor lock in remains one of the biggest risks in the cloud. It is easy to

get into the cloud but moving workloads and data out of a CSP is a technical and legal challenge. A

transition plan (exit strategy) needs to be defined up-front and agreed to by all parties to avoid vendor

lock in and close out at the end of a period of performance.

Price transparency from CSPs and matching price with the needs of the customer is important. There

currently is no standard model for pricing services (per unit cost) across CSPs and can be very dynamic,

making a standard GSA schedule difficult to maintain and comparing value of services difficult to compare.

Other costs need to be considered in contracts such as cleanup costs and accountability resulting from a

data breach.

With multiple government organizations pursuing cloud solutions, costs could be significantly reduced

with overarching contractual agreements. If the government can aggregate contracts with CSPs across

multiple agencies, the end goal could result in a negotiated discount based on volume. Sub contracts will

need to be homogenized into standard contracts specific to the end-user or end-consumer. For example,

if a government or contractor representative creates a virtual machine in a government cloud account,

they technically could be obligating the government if the pricing is based on on-demand usage.

Finally, the discussion concluded that the cloud should be treated in the same way as other utilities (e.g.,

phone, electricity) with variable consumption. Rules may be different based on use of a CSP’s public cloud,

private cloud, or hybrid cloud classification, but the product should be treated as a utility.

Top Discussion Points:

Vendor lock in and an appropriate exit strategy remain top challenges

o Price transparency and comparable unit costs need to be improved to help measure

return on investment

Overarching government contracts could reduce cost by purchasing in bulk

Cloud should be treated as a utility rather than a commodity

Tiered Architectures

The Tiered Architectures session was intended to generate a discussion around the movement toward

tiered architectures and the impact of security zones, common hardware, and cloud integrity. The goal of

the session was to discuss challenges facing the adoption of cloud with respect to identity access

management (IdAM), ensuring operational and data integrity in public clouds, and exploring the feasibility

of shared environments.

The goals of this session included:

Explore cloud IdAM

Discuss best practices and feasibility of adopting shared environments with multiple

classification levels

Identify barriers of adoption of tiered approaches, including technical challenges

This session identified the following needs:

Improved contractual agreements

Shared Request for Proposal (RFP) templates

To strengthen trust in relationships between government cloud consumers and cloud providers:

o Need to establish cyber incident reporting procedures and detection agreements

o Change management and software platforms should change at each level

o FedRAMP contract clause should be expanded

o Best practice should be established for information sharing

Continuity of Operations (COOP)/Disaster Recovery Plan

o Continental United States (CONUS) and clearance is required for access and management

Use FedRAMP as a baseline for requirements with many levels of goodness for the respective

tiers

Service providers should have a better understanding of the business requirements to provide

better service

The summary of the collaboration session is below:

The session started with the discussion topics posted by the session leads. The topics include:

How can multiple security classifications (e.g., TS vs. FOUO) exist on the same hardware? What policies

must be in place to enable this heterogeneous environment? How can the government incentivize cloud

providers to protect government data? How can FedRAMP expand or be improved to handle multiple user

or security classifications?

The session identified the current challenges with the major challenges focused on security, geography,

and operational concerns. In the area of security, the session discussed issues dealing with:

Different classifications systems on the same platforms

Challenges on how to separate classified systems or national security level systems verses

non-national security level systems

Federal Information System Management Act (FISMA) High (FIPS 199 High)

Ideally, lowering the sensitive data is preferred to enable cloud adoption. Different challenges exist within

the adoption landscape, such as co-mingling national security systems with non-classified systems versus

non-national security systems and non-classified systems. Finally, IdAM remains a challenge, particularly

in shared environments.

The session continued the discussion on cost versus risk management, templates for various workloads,

and related questions such as: Can workloads be compartmentalized? Is a boundary a suitability fit

regarding the separation of mission applications within the cloud environment? These challenges impact

a variety of aspects in the cloud industry such as:

COTS solutions

Guaranteed security

Permissions that follow data

Classification of data

Sophistication of threats

All about the data, things to consider cost vs Risk

Identity and access control

Encryption at storage level

PIV/CAC/Credentials

Middleware

HIPAA

Attestation

Inter-Agency Sharing

Service Level Agreement (SLA)

OpEx vs. CapEx Cloud

Data Loss

Compromise (Federal vs. State)

o Separation between Chief Information Security Office and Chief Information Officer

Storage Service Provider (SSP) controls vs SLA

Multiple levels on the same resources

Geography

Security personnel

Features of a cloud’s physical location:

o Performance

o Bandwidth

o Latency

o Optimized virtual desktop infrastructure (VDI) solutions

o End to end protection

o Network Operations Center, backup, support in different locations

o Supply Chain/Equipment Integrity

o Data Encryption

o Key Management System/Key Escrow

o Noisy neighbors

o Over-subscription

o Guaranteed

o IOPS (Input/Output operations per second)

o Trusted Internet Connection (TIC) not cloud-friendly

Geography

o Flood Zone Disaster Recovery

o Hybrid solutions

o Load Balancing

Operational Concerns

o Application Upgrades/ Operating system changes/patches

o Change of Management

o Control over supply chain

o Portioning, based on customer requirements

o Backups

o Cyber Defense

Reporting

Additional monitoring

Incident Reporting

Financial stability of CSP

Data Rights

Finally, the session concluded that many of these concerns can be mitigated through improved

contractual agreements. A good contract agreement can solve or prevent many of these issues. Improved

contracting vehicles can lead to better support from cloud providers and such vehicles should be

established using common templates for the greatest interoperability and sharing within the government.

The session identified the following needs:

Put all business needs in the contract, including:

o Data rights and data ownership

o Backups, disk requirements, and disposal procedures

o Application access rights and monitoring, even though it is not common but

recommended

o Put technical requirements inside contract

o Aids in the consistency of having multiple agencies use the same infrastructure

Shared RFP Templates

Trusted Relationships:

o Need establish cyber incident reporting procedures and detection agreements

o Change Management and software platforms should change at each level

o FedRAMP contract clause being expanded

o Establish best practice for information sharing

COOP/Disaster Recovery Plan

o CONUS and Clearance is required

Visibility

o How broad is the scope of current vulnerabilities

The Role of Cloud Computing Emerging Technologies

The Role of Cloud Computing Emerging Technologies session was intended to explore the relationships

between cloud computing and other emerging technologies, including mobile, big data, and the Internet

of Things (IoT). The goal of the session was to discuss how these emerging technologies enabled one

another, are inter-related, and can be adopted in tandem to realize larger, more impactful benefits.

The goals of this session included:

Discuss how cloud can aid the adoption of mobile, IoT, and big data

Discuss how cloud and other emerging technologies impact one another

Identify ways in which cloud is expected to provide future benefits to emerging technologies

and the government

This session identified the following needs:

Characteristics and environments unique to emerging technologies in government need to be

identified or developed

Appropriate access to enabling emerging technologies needs to be provided

Policy and training to enable adoption of emerging technologies needs to be created

Cost of adoption vs. non-adoption of emerging technologies needs to be evaluated

Quantifiable metrics (e.g., time value of money, time to use, cost of use, risk assessment) for

emerging technologies need to established

Ability to leverage emerging technologies that requires cloud computing needs to be recognized

The summary of the collaboration session is below:

The Role of Cloud Computing Emerging Technologies session discussions identified several

challenges which need to be considered. A primary topic discussed was when and how to use cloud

computing to enable the adoption and consumption of emerging technologies, and the need for work

towards better definitions, revised policy, improved training, and improved risk assessment. Emerging

technologies are more mature than cloud computing. Paired with the government adoption challenges

and low consumption rate in industry, it reduces the likelihood that cloud computing is a strong enabler

of emerging technologies. Government applications are not sufficiently optimized for the cloud, and

therefore will not yet drive wide-spread adoption of emerging technologies in the cloud. However, to

improve the likelihood of cloud enabled emerging technologies, use cases and justified use should be

defined, along with enumerated pros and cons of using cloud computing.

As with other collaboration sessions, the cloud acquisition process was identified by this session as an

area of concern. Specifically, the emerging technologies adoption and acquisition time frames and

processes do not match the cloud acquisition process (e.g., the cloud acquisition process is not dynamic

enough to be relied on by emerging technology implementers). Value measurement, defining return on

investment, and making value propositions are current challenges with emerging technologies.

Liability cost was identified as an area in need of improvement to ensure security breaches are handled

by the accountable party. Cloud security is still an area of concern within the government, particularly

with respect to access, IdAM, and authentication. Similarly, the geographic location and integrity of the

data being stored in the cloud remains a concern. In order for cloud to enable emerging technologies, the

consumers of the cloud-hosted data must have an established trust of the data consumed from and stored

in the cloud. Additionally, end-to-end solutions and models must be constructed to establish use cases

and operational models for emerging technology adoption.

Standard cloud infrastructures and models (i.e., hybrid, private, public, etc.) are still loosely defined.

Improving these definitions and standards would more easily enable the interoperability of clouds as well

as improve the interoperability that is required when working with emerging technologies. For example,

IoT is expected to have many end-points, and interoperability in a heterogeneous environment will be

required to enable cloud and IoT integration.

Emerging technology implementers should understand that Internet access is assumed but not always

available. The Internet is not ubiquitous enough to enable emerging technology use cases (e.g., census

collection, critical infrastructure data collection).

The following emerging technologies were identified and use as a basis for framing the rest of the

discussion and resulting recommendations:

IoT

Mobility

Big Data

Wearables (part of the larger IoT)

Social Networking

Containers such as Docker2

Application Streaming

Software Defined Networks (SDN)

While Big Data may be an exception within government agencies, other emerging technologies do not

have a strong value proposition for adoption in the cloud. Cloud computing enables and is helping drive

2 https://www.docker.com/

the adoption of big data practices. The Freedom of Information Act (FOIA) is a use case that spurs the

adoption of Big Data analytics. There is also an increased demand for immediate, real-time data

analytics to solve problems, make decisions, and meet mission goals. Quick set-up tools such as Docker

will increase demand for Big Data solutions as these tools are adopted.

OLAP (On-line Analytical Processing) and OLTP (On-line Transaction Processing) systems leverage Big

Data to enable real time decisions. OLTP emphasizes for OLTP systems is placed on very fast query

processing, maintaining data integrity in multi-access environments. OLAP is characterized by relatively

low volume of transactions. Queries are often very complex and involve aggregations. OLAP applications

are widely used by data mining techniques which provide views of various kinds of business processes

within an agency.

Cloud scalability will enable agencies to deal with storing, accessing and leveraging vast amounts of data

that are needed to carry out many agency missions; the accessibility of data in the cloud will enable

adoption of Big Data. In order to leverage accessibility as an enabler, agencies will need to convert

legacy data sources into electronic, digital, or automated data sources. Data inconsistencies need to be

addressed to enhance searching for relevant, mission focused data. This includes the consistency of data

formatting to enable agencies to leverage data warehousing.

Cloud computing aids emerging technology adoption in the following ways:

Mobile and Bring Your Own Device (BYOD) adoption:

Flexibility

Accessibility

Security Posture

Cost Savings

Connectivity

Communication – in disconnected mode

Does not equate to convenience or efficiency

Cloud Computing Aids IoT Adoption:

Filtering capabilities

Elasticity – manage types of data and connected edge devices

Use smart technologies to create intelligence by “learning” data needs

Recommendations:

Identify characteristics unique to emerging technologies

Provide appropriate access to emerging technologies to facilitate and encourage

experimentation

Policy and training investments need to be improved

Recognize the cost of not adopting the cloud

Quantify the value added with respect to risk assessment, time, and money investment

Emerging technologies require the cloud to be successful and ubiquitous at all levels

Cloud will not solve or address all emerging technology issues. Use cases or challenges such as

connectivity or high cost processing for applications cannot be solved by a cloud implementation.

Defining how cloud computing is value added to emerging technologies will speed adoption.

Summit Recommendations Each collaboration session produced common themes. Many of the challenges identified at past summits

have been addressed in part, but the same challenges still exist. For example, FedRAMP is now widely

accepted as a good, established baseline for minimum cloud security implementation. While acquisition

remains a key challenge, success stories are beginning to appear, and best practices and

recommendations are emerging. One of these recommendations is to include exit strategies in the

contracts to ensure data can be pulled from a cloud provider at the end of a period of performance. While

these challenges persist, they are being mitigated by government practitioners.

Other challenges and common themes came out of the collaboration sessions. The participants

recognized that financial savings is becoming secondary to the performance and long-term benefits of

adopting emerging technologies, including cloud computing. Cloud computing is becoming the enabler of

other emerging technologies, as well. Lacking from the cloud computing domain are metrics to assess

adoption effectiveness, true cost of adoption (e.g., benefits of automation), cost of delaying adoption

(e.g., reduced capabilities or higher costs later in the lifecycle), and a standard unit of cost.

The government does not have a standard method to identify which cloud provider or even type of cloud

would be most beneficial for adoption. To mitigate this – and other – risk and challenge, agile processes

should be used when adopting cloud computing; this includes continual engagement, small but frequent

deliverables, and fail-early models.

The summit participants also identified FedRAMP as a “good start” to cloud security. The participants

recognized FedRAMP as an accepted standard that identifies the minimum set of security that needs to

be in place for cloud adoption. Several participants identified the need for finer grained – or customized

– controls to be put into place to help tailor the set of standards to particular organizations, cloud

providers, and project goals.

Academia can provide strong technical resources and insights into the challenge areas discussed. To

alleviate the burden on the government, academics should be included in the planning and research

processes to help provide technical input. Qualified cloud practitioners are in high-demand, and

universities can help provide access to researchers and work with government to identify high value

concepts that can help prepare graduates for government cloud employment.

Working groups should also be held to allow cross-government collaboration and discussion to ensure

best practices are shared. Some working groups are in the planning stages across the government to

discuss more niche concerns. In conjunction with the Federal Cloud Computing Summit, specialized

government-only working groups should be established to allow specific solutions and government

programs to be discussed.

Moving forward, Federal Summits and specialized working groups that help broker the conversation

within government and between government, academia, and industry will continue to provide high value

impacts for government cloud practitioners.

Conclusion The January 2015 Federal Cloud Computing Summit highlighted several challenges facing the Federal

Government’s adoption of cloud computing. The challenges were not compartmentalized based on the

challenge areas at the Summit, but span across the discussions by Government cloud practitioners.

Specifically, cultural challenges, acquisition barriers, and technical understanding remain difficulties to

overcome. The adoption of agile processes, increased collaboration, and improved education and training

can help mitigate the identified challenges.

While the January 2015 Federal Cloud Computing Summit highlighted areas of continued challenges and

barriers to adoption (e.g., agency culture, budgeting mismatches), the Summit also cited notable advances

in mitigating these perennial challenges. For example, budgeting models that include spending and usage

rate controls and caps have been noted as suitable mitigations to fixed-budget models for elastically

consumed services. Similarly, cloud computing is largely accepted as a desired end-point, but wider

cultural opinions are shifting to an understanding that cloud computing should be adopted for suitable

solutions. In short, the community has made advances toward overcoming the challenges historically

associated with government cloud adoption, but work still remains to be done before these challenges

are entirely mitigated.

From the recommendations made in the Collaboration Sessions, government practitioners (at all levels of

government) should participate in special interest groups or working groups to increase collaboration;

continue to influence standards development within the discipline; and continue to partner with

academia to leverage cross-cutting research and to help train the government workforce. These activities

will further mitigate the perennial cloud adoption challenges cited by the participating cloud practitioners.

The authors’ affiliation with The MITRE Corporation is provided for identification purposes only,

and is not intended to convey or imply MITRE's concurrence with, or support for, the positions,

opinions or viewpoints expressed by the author.

©2015 The MITRE Corporation. ALL RIGHTS RESERVED.

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